EIOPA evaluates progress on supervising the propriety of (re)insurers’ administrative, management and supervisory body members and qualifyin

12 October 2022

EIOPA has found that the supervision of AMSB members’ and qualifying shareholders’ propriety assessment has improved during the last two years even though the development of supervisory practices is still in progress in a number of countries.

The European Insurance and Occupational Pensions Authority (EIOPA) published today a follow-up report to the 2019 peer review on the propriety assessment of administrative, management and supervisory body (AMSB) members and qualifying shareholders across the European Economic Area. The follow-up report assesses how national competent authorities (NCAs) have implemented the actions recommended in the original peer review. 

EIOPA has found that the supervision of AMSB members’ and qualifying shareholders’ propriety assessment has improved during the last two years even though the development of supervisory practices is still in progress in a number of countries.

Sixteen NCAs have fully implemented the actions recommended to them by EIOPA while one NCA has fully implemented more than half of its recommended actions. Another six NCAs have worked on implementing 50% of the prescribed actions to them. Five national competent authorities have implemented less than 50% of the recommended actions, out of which one has not worked at all on the follow-up of the peer review.

The 2019 peer review also identified best practices. Most of these have already been adopted by NCAs, leading to a more coherent and consistent application of supervisory guidance.

In accordance with the best practices laid out in the 2019 peer review, NCAs have since:

• developed regulatory frameworks ensuring the accountability of individuals and allowing the authorities to take timely action in case of supervisory breaches;
• worked on establishing supervisory assessment routines of AMSB members taking records into account that are comprehensive in their nature and scope;
• worked on legislation providing a framework that explicitly requires NCAs within the same Member State to share information with each other;
• developed a database to ensure that (fitness and) propriety information is readily available and recorded for future assessments or for information sharing with other supervisory authorities; and
• commenced work on developing a well-structured framework allowing for the appraisal or verification of the propriety of qualifying shareholders on a continuous basis.

EIOPA invites NCAs that have not yet fully implemented the recommended actions to consider the identified examples as inspiration for the development of their national supervisory practices. EIOPA will continue to closely monitor the implementation of recommended actions. EIOPA will also consider how best practices can be included in EIOPA’s supervisory handbook to foster further convergence in the application of the principle of proportionality.

© EIOPA